Borge, Lars-Erik; Tovmo, Per - Institutt for Samfunnsøkonomi, Norges … - 2007
The paper analyzes the intertemporal spending behavior of Norwegian local governments with particular attention to … liquidity constraints imposed by balanced-budget-rules (BBRs). The main findings are: (i) On average, local government spending … behavior is neither perfectly forward looking nor fully myopic. (ii) Local governments with good fiscal conditions behave more …